The EU Commission blocks Hungary’s attempt to veto a transaction in the insurance sector under FDI rules (AEGON / Vienna Insurance)

In Short The Situation: The European Commission ("EC") issued its first decision ("Decision") regarding the intersection of EU merger control rules and the recent growth in national Foreign Direct Investment ("FDI") regimes. The EC found that the Hungarian government's decision to block a transaction under its domestic FDI rules infringed upon the EC's exclusive jurisdiction to review transactions with an "EU dimension," subject to certain exceptions. The Context: This decision contrasts with recent EC efforts to support national-level development of FDI screening regimes. Looking Ahead: Although the EC's Decision may add another layer of EU approval for certain transactions subject to concurrent EU merger control and national FDI reviews, it limits the circumstances in which a